Stocks End Mixed After Paring Gains; July IPO Chuy’s Rockets

By VINCENT MAO, INVESTOR’S BUSINESS DAILY

Despite upbeat factory data, stocks pared gains of 1% or more to end mixed on the fourth quarter’s first day.

The Dow Jones industrial average rose 0.6% and the S&P 500 climbed 0.3%. They were up as much as 1.2% and 1.1%, respectively. Meanwhile, the Nasdaq turned a 1% gain into a 0.1% loss. A few computer-related groups fell hard Monday. Chips were also weak. The Philadelphia semiconductor index fell 0.3%.

Volume rose on the NYSE and dipped on the Nasdaq, according to early data.

The market’s fade didn’t affect recent IPO Chuy’s Holdings (CHUY), as it charged up 11% to a fresh all-time high. It has nearly doubled since coming public July 24. In late August, the company delivered a 175% pop in Q2 earnings, but still missed views. Another triple-digit gain is expected in the current quarter. The Tex-Mex restaurant chain is featured in Monday’s New America section.

Generac Holdings (GNRC) ended well off a fresh record high, but still closed up 9% after raising guidance. Citing strong demand for its portable generators, the company pegged Q3 sales at $295 million to $300 million. Earnings are now expected at 72 cents to 77 cents a share. Both are well above views. It also guided full-year profit above analysts’ expectations. The stock also cleared a 24.44 buy point in a cup-with-handle base. Shares were up as much as 17% intraday.

Nationstar Mortgage Holdings (NSM) rallied 5% to an all-time high in triple its average volume. The stock has been on fire in recent weeks and is well extended from a sharp rebound off its 10-week moving average.

Leaders down in volume were few, but Dick’s Sporting Goods (DKS) turned tail, dropped 3% and breached its 50-day line in more than twice its average volume. The reversal puts it 4% below a 52.10 buy point from a base-on-base pattern. Dick’s cleared the base Sept. 13 in lackluster trade.

Data on September vehicle sales will be released throughout the session Tuesday.

Fertilizer maker Mosaic (MOS) will release fiscal Q1 earnings before the market’s open Tuesday. Analysts see profit falling 4% to $1.15 a share. Sales are expected to fall 14% to about $2.68 billion.

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